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Real Estate
Newsletter - 2nd Quarter 2006
 
In this Issue...
Going Green With Envy: Green Architecture Is Here to Stay
 
June 27, 2006
 
James Mayer - Chicago

If someone told you that there exists today a building construction technology that leads to students progressing 20 percent faster on math tests and 26 percent faster on reading tests, 40 percent increased sales in stores and improvement in patient outcomes in hospitals, wouldn’t you try to find out about this technology? Of course you would. The technology in question is “green” architecture, which, generally speaking, can be described as the use of environmental-related construction technology with a goal of creating a healthier asset. For example, the roof in one “green” building has been designed to collect rain water such that the amount of water that would ultimately have found its way into the sewer system will be reduced by 25 percent. The rain water is collected in a tank in the basement and will replace water lost to evaporation in the air conditioning system. It is also fed into a special pumping system to irrigate plants and trees outside the building.

Benefits of Green Architecture

While environmental consciousness in the construction of buildings may be something developers consider, the reasons to incorporate green architecture into their buildings are actually very practical, as its use has many benefits, including reduced energy costs, reduced building costs, productivity enhancement, better aesthetics and the availability of government incentives.

Reduced Energy Costs

Properties with “green roofs” have been able to utilize their insulating properties to reduce the amount of energy needed to heat and cool buildings effectively. Green roofs have been shown to reduce heating and cooling costs from 25-50 percent for the floor directly below the roof. They can also significantly slow a building’s heat gain and loss. Roof temperatures under a green roof are significantly cooler than their counterpart blacktop and reflective white membrane roofs. Therefore, the HVAC systems of buildings equipped with green roofs operate more efficiently, which results in lower energy costs for the building owner.

Reduced Building Costs

Green roofs extend roof life. They protect exterior roof membranes from ultraviolet radiation, extreme temperature fluctuations, punctures and other physical damage. The result is a diminished need for costly roof replacements and maintenance and real savings for building owners.

Productivity Enhancements

As mentioned earlier, green architecture has been shown to increase student test scores, increase sales and improve patient outcomes in hospitals. This is due to the many benefits to the users of a green building. For example, sound insulation is a benefit of a green roof. The plant and layers of trapped air in a green roof system serve as sound insulators. Tests have shown that green roofs can reduce the indoor noise pollution from outdoor contributors by as much as 10 decibels.

Aesthetics

Green roofs also have aesthetic benefits: a visually pleasing design and functional roof-top gardens. Green roofs also increase the value of buildings, both residential and commercial. And they help industrial and commercial properties blend into suburban and rural areas.

Governmental Incentives

As energy demands continue to increase and threaten supply, many cities are providing governmental incentives, including tax credits, for those who use green technology.

Benefits vs. Costs

While green architecture may often not be inexpensive to build, the most compelling argument to win over skeptics of green architecture is to describe the financial benefits overall. For example:

• the increased cost of a green roof over a traditional roof may be offset by the increased property value, energy cost savings and a longer roof life

• green buildings use less energy, so the building asset can be run for less money

• green space can be leased for higher rents – tenants want healthy offices and that can lead to increased productivity

The LEED Green Building Rating System

The construction industry, via a coalition of construction industry leaders who make up the U.S. Green Building Council, has been involved in grading and promoting green architecture. The mission of the U.S. Green Building Council is to transform the way buildings are designed, built and operated so that everyone can enjoy an environmentally and socially responsible, healthy and prosperous built environment, one that improves a community’s quality of life. In 2000, the U.S. Green Building Council established the LEED (Leadership In Energy Environmental Design) Green Building Rating System in order to grade buildings in such areas as energy and water consumption, indoor air quality and use of renewable materials. The LEED Green Building Rating System has become the benchmark for achievement in high performance green building.

Usage Trends

According to surveys, there was a 72 percent growth in green roof square footage across North America between 2004 and 2005, and a growth of more than 80 percent in the United States.

Chicago has recently been the leader in the United States in green roof projects; nearly 300,000 square feet of green roof space were planted there in 2005. Chicago’s mayor, Richard M. Daley, has described green roofs as part of an effort to make his city “the most environmentally friendly” American city. Chicago, which installed a green roof on its city hall in 2000, has offered developers more regulatory incentives than any other city in North America.

For more information, e-mail James T. Mayer at james.mayer@hklaw.com or call toll free, 1-888-688-8500.